Solomon Islands

SOLOMON ISLANDS

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS SOLOMON ISLANDERS
DEPENDENCIES
BIBLIOGRAPHY

CAPITAL: Honiara

FLAG: The flag consists of two triangles, the upper one blue, the lower one green, separated by a diagonal gold stripe; on the blue triangle are five white, five-pointed stars.

ANTHEM: God Save the Queen.

MONETARY UNIT: The Solomon Islands dollar (si$), a paper currency of 100 cents, was introduced in 1977, replacing the Australian dollar, and became the sole legal tender in 1978. There are coins of 1, 2, 5, 10, 20, and 50 cents and 1 dollar, and notes of 2, 5, 10, 20, and 50 dollars. si$1 = us$0.13361 (or us$1 = si$7.4847) as of 2004.

WEIGHTS AND MEASURES: The metric system is in force.

HOLIDAYS: New Year's Day, 1 January; Queen's Birthday, celebrated as a movable holiday in June; Independence Day, 7 July; Christmas, 25 December; Boxing Day, 26 December. Movable religious holidays include Good Friday, Easter Monday, and Whitmonday.

TIME: 11 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

The Solomon Islands consist of a chain of six large and numerous small islands situated in the South Pacific, some 1,900 km (1,200 mi) ne of Australia and about 485 km (300 mi) e of Papua New Guinea. Extending 1,688 km (1,049 mi) ese–wnw and 468 km (291 mi) nne–ssw, the Solomon Islands have an area of 28,450 sq km (10,985 sq mi). Comparatively, the area occupied by the Solomon Islands is slightly smaller than the state of Maryland. The largest island is Guadalcanal, covering 5,302 sq km (2,047 sq mi); other major islands are Makira (formerly Malaita), San Cristobal, Vella Lavella, Choiseul, Rennell, New Georgia, and the Santa Cruz group. The total coastline of the Solomon Islands is 5,313 km (3,301 mi).

The capital city of the Solomon Islands, Honiara, is located on the island of Guadalcanal.

TOPOGRAPHY

The topography varies from the volcanic peaks of Guadalcanal to low-lying coral atolls. Densely forested mountain ranges are intersected by precipitous, narrow valleys. The highest peak is Mt. Makarakomburu, at 2,447 m (8,127 ft), on Guadalcanal, an island that also contains the country's most extensive alluvial grass plains. Rivers are narrow and impassable except by canoe. Extensive coral reefs and lagoons surround the island coasts.

The Solomon Islands are located in a seismically active region. However, though recent quakes have been measured in ranges considered to be strong to major, there have been few fatalities and injuries and damage reports have be minimal. On 20 January 2003, a 7.3-magnitude quake occurred at a location about 80 mi (130 km) west of Kira Kira. On 8 October 2004, a 6.8 magnitude quake hit at about 95 mi (155 km) southeast of Kira Kira. Another 6.9-magnitude quake hit around the same region on 9 November 2004, followed by a 6.7 quake on 11 November.

CLIMATE

The climate is tropical. From December to March, northwest equatorial winds bring hot weather and heavy rainfall; from April to November, the islands are cooled by drier southeast trade winds. Damaging cyclones occasionally strike during the rainy season. The annual mean temperature is 27°c (81°f); annual rainfall averages 305 cm (120 in), and humidity is about 80%.

FLORA AND FAUNA

Dense rain forest covers about 90% of the islands, with extensive mangrove swamps and coconut palms along the coasts. Other tree species include teak, African and Honduras mahogany balsa, and Queensland maple. The islands abound in small reptiles (about 61 species), birds (163 breeding species), and mammals (53 species), as well as insect life. There are over 230 varieties of orchids and other tropical flowers.

ENVIRONMENT

Most of the coral reefs surrounding the islands are dead or dying. As an island nation, the Solomon Islands are concerned with the effects of global warming and rising sea levels. Deforestation is another significant environmental problem. The related problem of soil erosion threatens the country's agricultural productivity. Sources of water pollution include sewage, pesticides, and mining by-products.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species includes 20 types of mammals, 21 species of birds, 4 types of reptiles, 2 species of amphibians, 5 species of fish, 2 types of mollusks, 4 species of other invertebrates, and 16 species of plants. Threatened species include the gizo white-eye and the hawksbill, green sea, and leatherback turtles. The Solomon Islands' crowned pigeon, the emperor rat, and the Nendo tubenosed fruit bat have become extinct.

POPULATION

The population of the Solomon Islands in 2005 was estimated by the United Nations (UN) at 472,000, which placed it at number 162 in population among the 193 nations of the world. In 2005, approximately 3% of the population was over 65 years of age, with another 40% of the population under 15 years of age. There were 107 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 2.6%, a rate the government viewed as too high. Despite declines in fertility rate since the mid-1990s, at 4.7 births per woman, it remains one of the highest among Pacific Island nations. The projected population for the year 2025 was 700,000. The overall population density was 16 per sq km (42 per sq mi), but there are significant variations from island to island. The most populous islands are Malaita and Guadalcanal. Moreover, most mountainous and heavily wooded areas are inaccessible (except to tribal groups of the interior), and most of the population is concentrated in the coastal regions.

The UN estimated that 16% of the population lived in urban areas in 2005 and that urban areas were growing at an annual rate of 4.48%. The capital city, Honiara, had a population of 56,000 in that year. Honiara, on Guadalcanal, is the largest town and chief port.

MIGRATION

Since 1955, immigrants from the Gilbert Islands (now Kiribati) have settled in underpopulated areas. Movements from the countryside to Honiara and northern Guadalcanal have created problems of overcrowding. The resentment engendered by those who moved from the heavily populated island of Malaita to Guadalcanal resulted in violence in 1999. In 2000, the total number of migrants was 4,000. The net migration rate for 1999 and 2005 was zero. The government views the migration levels as satisfactory.

ETHNIC GROUPS

Melanesians account for about 94.5% of the total population. Polynesians make up about 3% and Micronesians account for about 1.2%. Europeans and Chinese each account for less than 1% of the population. Melanesians live mainly on the larger islands; Polynesians tend to inhabit the smaller islands and atolls.

LANGUAGES

English is the official language but is only spoken by approximately 1–2% of the population. Melanesian pidgin is the lingua franca. Some 120 indigenous languages and dialects are spoken, each within a very restricted geographical area.

RELIGIONS

Christianity, introduced by missionaries in the 19th and early 20th centuries, is the principal organized religion. The primary denominations are Anglican, Roman Catholic, Methodist, and Seventh-Day Adventist. Indigenous churches that are offshoots of other established Christian churches are attended by about 2% of the population. Other groups represented are Jehovah's Witnesses, Mormons, and Baha'is. The most recent census reported 12 Muslims in the country.

The Department of Home and Cultural Affairs has a policymaking role in religious affairs; however, this regulation is only meant as a precaution for maintaining public order, and there have been no reports of major restrictions on religious groups. The constitution provides for freedom of religion. Christianity is taught in public schools, but the course is not required.

TRANSPORTATION

In 2002, there were an estimated 1,360 km (845 mi) of roads in the Solomons, of which only 34 km (21 mi) were paved. Of the 1,326 km (824 mi) of unpaved roads, about 800 km (497 mi) belong to private plantations. Shipping services link the Solomons with other Pacific islands, Australia, Japan, and Europe. Honiara is the principal port, followed by Ringi Cove. A fleet of government vessels provides interisland connections and handles about one-third of total tonnage carried. There were an estimated 33 airports in 2004, but only two (as of 2005), had paved runways. Henderson's Field, on the northern coast of Guadalcanal, is the site of Honiara's civil airport. Solomon Airlines provides regular flights between islands and to nearby Papua New Guinea and Vanuatu. In 1997 (the latest year for which data was available), Solomon Airlines carried about 94,000 passengers on domestic and international flights.

HISTORY

The islands now known as the Solomons are thought to have been originally inhabited by Melanesians, whose language has affinities with Malay but whose precise origin has not been determined. The first European contact with the Solomons, in 1567, was the sighting of Santa Isabel Island by the Spanish explorer Alvaro de Mendaña; the following year, Mendaña and another Spaniard, Pedro de Queirós, explored some of the islands. Mendaña named the islands Islas de Salomon, thinking that the gold source for King Solomon's riches was located there.

European contact with the Solomons was cut off for nearly two centuries until they were visited by the English navigator Philip Carteret in 1767. Following Carteret's visit, the British navy began to make periodic calls at the islands. During the period 1845–93, the Solomons were frequently visited by missionaries and traders. Indigenous peoples were also subjected to exploitation by "blackbirders," who impressed their captives into forced labor, often on colonial sugar plantations in Fiji, Hawaii, Tahiti, or Queensland. The brutality of the kidnappers provoked reprisals by the islanders, resulting in mass slayings of both Europeans and local peoples.

In 1893, the British government stepped in and established a protectorate over certain islands in the southern Solomons, including Guadalcanal, Malaita (now Makira), San Cristobal, and the New Georgia group. The remainder of the Solomons had by this time fallen under German dominion; some of these, including Choiseul and Santa Isabel, were transferred by treaty to the United Kingdom in 1900. The British Solomon Islands Protectorate, as the entire group came to be known, was initially under the jurisdiction of the Office of the British High Commissioner for the Western Pacific.

During World War II, the Solomons provided the theater for some of the most bitter fighting of the Pacific war after Japanese troops invaded and occupied Guadalcanal in 1942. A Japanese airfield on the island's northern coast—later known as Henderson's Field—was captured by US Marines on 7 August 1942, the opening foray in the Battle of Guadalcanal, which cost the lives of about 1,500 US soldiers and 20,000 Japanese. Guadalcanal was evacuated by Japan in February 1943, although Japanese forces remained elsewhere in the Solomons until 1945. Widespread destruction and loss of life were visited on the local peoples during the war, and the legacy of social dislocation gave impetus to the development of a pro-independence nationalist movement in Malaita known as the Marching Rule.

In 1953, local advisory councils were set up in Malaita, eventually spreading to other islands of the protectorate. In 1960, the territorial government appointed executive and legislative councils, which were granted their first elected minority in 1964. A new constitution promulgated in April 1970 provided for replacement of the two councils by a unitary Governing Council, the majority of whose members were to be elected. During May and June, the Solomon Islands' first general election was held, with voters selecting 17 of the council's 26 members. On 21 August 1974, a new constitution introduced a ministerial system of government headed by a Council of Ministers. A Legislative Assembly subsequently chose Solomon Mamaloni as the Solomons' first chief minister. In May 1975, a delegation from the Solomon Islands, led by Mamaloni, met with UK officials in London and set up a timetable for internal self-government and full independence. On 22 June 1975, the territory's name was officially changed from the British Solomon Islands Protectorate to the Solomon Islands.

The islands achieved internal self-government in 1976 and became an independent member of the Commonwealth of Nations on 7 July 1978. Peter Kenilorea was prime minister until his coalition government collapsed in August 1981, after which Mamaloni returned to power. In October 1984, Sir Peter Kenilorea (as he had become) was reelected prime minister, but he resigned in November 1986, following allegations of mismanagement of funds; Ezekiel Alebua, deputy prime minister, succeeded him. In the general elections of February 1989, the People's Alliance Party (PAP), led by Solomon Mamaloni, defeated the Alebua government. Mamaloni became the new prime minister in March 1989. Mamaloni resigned as PAP leader in October 1990 and formed a coalition government with several members of the opposition. Francis Billy Hilly, an independent supported by members of the National Coalition Partners (a loose six-party coalition), became the Solomon Islands' new prime minister in June 1993. Hilly worked with the Melanesian Spearhead Conference to ease tensions between the Solomon Islands and Papua New Guinea. In 1994, parliament voted to replace Hilly with Mamaloni, leader of the Group for National Unity and Reconciliation (GNUR), the largest political party in parliament.

In the 1997 national parliamentary elections, the GNUR retained its majority, and Bartholomew Ulufa'alu was elected prime minister. He pledged to resolve the Solomons' financial crisis by improving revenue collections and downsizing government ministries. He also grappled with the problem of finding a resolution to the ethnic conflict in Guadalcanal, which had dominated all other domestic political issues since late 1998. Disputed were issues of land ownership, access to education, employment and economic development between the people of Guadalcanal and Malaitan settlers on the island. That year, the Isatubu Freedom Movement (IFM), representing Guadalcanal's native people, began to forcibly evict Malaitans, who responded by forming the Malaita Eagle Force (MEF). In May 2000, the MEF took Ulufa'alu hostage, staging a coup. Ulufa'alu resigned, and in June he was replaced by Manasseh Sogavare. Fighting between the two factions left over 100 people dead and more than 20,000 displaced. A peace agreement was signed in October 2000, but it failed to end the violence. Unarmed peacekeepers from Australia and New Zealand were sent to supervise disarmament and demilitarization. In September 2001, IFM rebel leader Selwyn Sake was killed, threatening the peace agreement. In November, the MEF reported that 90% of its weapons had been surrendered. Allan Kemakeza of the PAP was elected prime minister in December 2001. In February 2003, a member of the country's National Peace Council, Sir Frederick Soaki, was assassinated. He had worked with the UN to demobilize former militants still employed by the government as police officers on Malaita. In 2003, Kemakeza's government was criticized for failing to curb the actions of militia members, three of whom were convicted in 2005 of the April 2003 murder of six Melanesian brothers on the Weathercoast of Guadalcanal.

An Australia-led intervention force, the Regional Assistance Mission to Solomon Islands (RAMSI), came to the Solomon Islands in July 2003 to assist ending the lawlessness and corruption following the years of unrest. In July 2004, the first anniversary of RAMSI's partnership with the people of the Solomon Islands was celebrated with festivities in Honiara; however, not all were happy with the governmental welcome afforded RAMSI.

A group of 66 rebel militants calling themselves the Malaita Separatist Movement demanded the resignation of prime minister Allan Kemakezain May 2005. They cited dissatisfaction with his pro-Australian views and accused RAMSI of being motivated by ethnic hatred, particularly against Malaitans.

In July 2005, the cabinet approved voting reforms aimed at eliminating the election fraud that resulted from voters selling their unmarked ballots. Under the proposed plan, each voter was to have his finger marked with indelible ink, after which the voter would go into a private voting booth to mark the ballot, and then cast the marked ballot into a central ballot box, in view of the election officials.

GOVERNMENT

Under the independence constitution of 1978, the Solomon Islands is a parliamentary democracy with a ministerial system and a unicameral national parliament consisting of 50 members elected to four-year terms; suffrage is universal for citizens over the age of 21. The prime minister, who must command a parliamentary majority, selects the 20-member cabinet. The head of state is the British monarch, represented by the governor-general. Governor-general since 1994, Sir Moses Pitakaka was replaced in May 1999 by Anglican priest Father John Lapli, who was elected by the national parliament over six other candidates, including Pitakaka. There is a constitutionally provided ombudsman to provide protection against improper administrative treatment.

POLITICAL PARTIES

The members of the first parliament formed after independence in 1978 had no party affiliations. However, political parties emerged shortly before the elections of August 1980, in which the Solomon Islands United Party, headed by Peter Kenilorea, won 14 seats; the People's Alliance Party (PAP), led by Solomon Mamaloni, received 8 seats; the National Democratic Party (NDP), 2 seats; and independents, 14 seats.

In the December 2001 elections, the dominant parties were the PAP, led by Kemakeza, which won 16 seats; the Alliance for Change Coalition, led by Ulufa'alu, which took 13 seats; the People's Progressive Party, led by Sogavare, which took 2 seats; and the Labor Party, led by Joses Tuhanuku, which won 1 seat. Independents held 18 seats.

The following elections were held in April 2006; as of June 2006, the results had not yet been made public. Elections were scheduled for 2010.

LOCAL GOVERNMENT

The islands are divided into nine administrative districts, of which eight are provinces, each with an elected assembly and a premier; the ninth is the town of Honiara, governed by an elected council. In outlying areas, village headmen exercise administrative responsibilities.

JUDICIAL SYSTEM

The judicial system is based on a blend of British and traditional systems and consists of the High Court, magistrate's courts, and local courts. Appeals from magistrate's courts go to the High Court; customary land appeals courts hear appeals from the local courts.

Defendants in criminal cases are entitled to counsel and to the writ of habeas corpus. Violations of civil liberties are punishable by fines and jail sentences. An ombudsman with the power of subpoena can investigate complaints of violations of civil liberties. The traditional culture, in addition to legal provisions, provides strong protection against arbitrary interference with privacy, home, family, and correspondence.

ARMED FORCES

The Solomon Islands have no military forces. There is a 500-member police force that also engages in border protection. Maritime surveillance is also provided by this police force, which is headed by a commissioner.

INTERNATIONAL COOPERATION

The Solomon Islands joined the United Nations (UN) on 19 September 1978 and belongs to ESCAP and several nonregional specialized agencies, such as the FAO, the World Bank, ILO, UNCTAD, UNESCO, and the WHO. It participates in the Asian Development Bank, the ACP Group, the Commonwealth of Nations, WTO, G-77, the South Pacific Regional Trade and Economic Cooperation Agreement (Sparteca), the Alliance of Small Island States (AOSIS), and the Pacific Island Forum. In environmental cooperation, the Solomon Islands are part of the Convention on Biological Diversity, the London Convention, the Montréal Protocol, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

At least 75% of the population is tied to subsistence agriculture. The capital sector is dependent on the production of copra, timber, and fish for export, but outputs of other cash commodities—particularly cocoa, spices, and palm oil—have grown in recent years. The development of large-scale lumbering operations has increased timber production considerably, and concern about the preservation of forest resources led to government restriction of log exports in 1993. In the late 1990s, the economic downturn in Asia led to the collapse of the export market for logs—primarily Japan and South Korea. In late 1997, the government devalued the currency to encourage the development of other export products and to discourage the growth of imports. The economy declined by 10% in 1998, and the government initiated cutbacks in government agencies. The GDP growth rate was -15% over the 2001–03 period. The islands are rich in undeveloped mineral resources such as lead, zinc, nickel, and gold. However, in 1998, Ross Mining of Australia began producing gold at Gold Ridge on Guadalcanal. In the wake of ethnic violence in 2000, exports of palm oil and gold ceased while exports of timber fell. Negotiations were under way in 2005 to reopen the Gold Ridge Mine and the major palm oil plantation, but each could take years to reopen.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 the Solomon Islands' gross domestic product (GDP) was estimated at $800.0 million. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $1,700. The annual growth rate of GDP was estimated at 5.8%. The average inflation rate in 2003 was 10%. It was estimated that agriculture accounted for 42% of GDP, industry 11%, and services 47%.

LABOR

The wage labor force in 2002 totaled approximately 27,000. As of that year, 80% worked in agriculture, 5% had jobs in industry, and the remainder were in services. The country suffers from an acute shortage of skilled workers, and an estimated 80% of professional and technical employees are recruited from overseas. There was no data available on the country's unemployment rate.

Most employed persons have a standard workday of between five and six hours, six days a week, with overtime bringing the average workweek to 45 hours. The minimum working age is 12, or 15 years old for work in factories or on ships. In practice, given low wages and high unemployment, there is little reason to hire children. The minimum wage was us$0.31 per hour in 2002. The Solomon Islands' largest trade union is the Solomon Islands National Union of Workers. Unions are free to organize and strike, although unions seldom strike. About 60–70% of wage earners were unionized as of 2001. Government regulations require employers to provide housing for workers whose jobs do not permit them to travel to and from home each day. Unions regularly engage in collective bargaining.

AGRICULTURE

About 2.8% of the total land area is utilized for temporary or permanent crops. Agriculture accounts for about 41% of GDP. Copra (coconut meat) is typically the dominant export and the economic lifeline of the Solomons; world copra prices strongly affect the economy, so a decline in copra prices in 1985 inaugurated an economic slump, exacerbated by the effects of Cyclone Namu. In 1992, production of copra increased by over 30% from 1991, for a total of 38,500 tons. The rebound in 1992 came from a near-doubling of world prices and better coordination of domestic shipping. Copra exports in 2004 were estimated at 5,000 tons. About 75% of the copra is produced by small holders, principally on Guadalcanal, Choiseul, the Russell Islands, San Cristobal, Santa Isabel, and Vella Lavella. Development plans called for crop diversification and the construction of a copra mill on the islands. The overseas marketing of copra is a monopoly of the government's Solomon Islands Copra Board. Other agricultural products in 2004 included cocoa, 4,000 tons; palm oil, 34,000 tons; and palm kernels, 8,000 tons. In 2004, agricultural products accounted for 36% of exports and 8% of imports. Exports of palm, copra, and cocoa typically account for over 20% of total exports.

The major food crops are coconuts, yams, taro, sweet potatoes, cassava, and green vegetables. The government has encouraged the cultivation of rice, rotated with soybeans, in the Guadalcanal plains; however, cyclone losses resulted in increased dependence on imported rice.

ANIMAL HUSBANDRY

Cattle were traditionally kept on coconut plantations as a means of controlling the growth of grass, and many large copra plantations raised cattle for slaughter. There were 13,500 head of cattle and 53,000 pigs on the islands in 2005. Over 40% of the cattle are raised by small holders. The government's Livestock Development Authority (LDA) maintains about 3,200 head on Guadalcanal and Western Province. The LDA is now mostly a producer of trader pigs and poultry, raising 25,000 chicks and 120 piglets per month for sale. Production of pork has doubled since the early 1980s, yet still has not kept up with domestic demand. About 3,300 tons of meat were produced in 2005.

FISHING

Fish are an essential part of the local diet, and fishing has become an important commercial activity. In 1991, the total catch reached a record high of 69,292 tons; the total catch in 2003 was 39,903 tons. In 2003, the annual catch of skipjack tuna was 19,014 tons. Exports of fish products in 2003 were valued at $20.2 million.

FORESTRY

Forests cover about 88.8% of the total area, with about 2,536,000 hectares (6,266,000 acres) of timber stands providing an estimated timber yield in 2004 of 692,000 cu m (24.4 million cu ft), of which about 554,000 cu m (19.6 million cu ft) was exported as logs. Exports of forest products were valued at $41.5 million in 2004, 97% of it from logs. Important forest timbers are kuari, balsa, teak, Honduras and African mahoganies, Queensland maple, silky oak, and black bean. Several hundred chainsaw operators and about 40 portable sawmills produce over one-fifth of all sawn timber. Logging at current rates (15–16,000 hectares/37–39,000 acres per year) exceeds the estimated maximum sustainable annual cut by three times. Forest preservation and management legislation has been proposed, but there is no long-term viable silvicultural plan in place.

MINING

Although the archipelago was named in the 16th century for the fabled gold mines of King Solomon and had long-term mining potential, there have been insufficient high-quality mineral deposits to justify extensive mining investment. Mining was nevertheless the second-leading industry in 2002. Because of political and ethnic violence, mineral production in 2001 was limited to small quantities of common clays, crushed stone, and sand and gravel, and no gold or silver mining was reported (a minor amount of gold, and possibly associated silver, was obtained from primitive panning and sluicing by individuals). In 2000, production of gold was 338 kg, with silver output that year estimated at 200 kg. There was no recorded gold or silver output for 2001. The Gold Ridge Mine, at Mavu, which was closed from mid-2000 through the end of 2001, had undertaken a study to upgrade production from 3,100 kg per year to 4,500–4,700 kg per year, which could increase the mining sector's contribution to GDP from 1% to 15%. The country's main industrial prospects focused on its undeveloped mineral resources of gold-silver, lead-zinc, nickel, and phosphate. Deposits of bauxite, copper, chromite, and manganese ores have also been found.

ENERGY AND POWER

The Solomon Islands, with no proven reserves of oil, natural gas, or coal, relies entirely upon imports to meet all its petroleum, natural gas, and coal product needs.

In 2002, imports and demand for refined petroleum products each averaged 1,240 barrels per day. There were no imports or consumption of natural gas or coal in 2002.

Most electric power is supplied by the government-controlled Solomon Islands Electricity Authority, although some private undertakings produce their own electricity. Electric generating capacity in 2002 was 12,000 kW, of which all was fossil fuel based. Electrical output was 0.054 billion kWh, with demand for electricity at 0.050 billion kWh in 2002.

INDUSTRY

Industrial activity in the Solomons is rudimentary, lacking in both the capital and the skilled labor necessary for significant development. The leading industries are fish processing and timber milling; soaps are made from palm oil and coconut oil. Small firms produce a limited array of goods for the local market: biscuits, tobacco products, rattan furniture, baskets and mats, concrete blocks, boats, and fiberglass products. In 1998, Ross Mining of Australia began producing gold at Gold Ridge on Guadalcanal. Minerals exploitation in other areas has continued. A Japanese joint venture, Solomon Taiyo Ltd., which operated the only fish cannery in the country, closed in mid-2000 due to ethnic disturbances. The plant later reopened under local management, but the export of tuna had not resumed by year-end 2005.

SCIENCE AND TECHNOLOGY

The Solomon Islands College of Higher Education has schools of nursing, natural resources, marine and fisheries studies, and industrial development.

DOMESTIC TRADE

Honiara is the commercial center, with a highly developed port and a wide variety of services to support trade and tourism. However, growth in both domestic trade and tourism has been hindered by inadequate infrastructure and security concerns. Most commercial enterprises have been controlled by the Chinese or Europeans. A large segment of the population still relies on bartering. Normal banking hours are 9 am to 11:30 am and 1:30 pm to 3 pm, Monday through Thursday, and 9 am to 3 pm on Friday. Normal office hours are 8 am to 12 noon and 1 pm to 4:30 pm, Monday through Friday.

FOREIGN TRADE

Overseas trade volume expanded rapidly in the mid-1990s, but the economic woes in Asia in the late 1990s and ethnic conflict in the early 2000s caused the export market to contract significantly. The distribution of the Solomon Islands' trade continues to be limited by the huge distances to potential export markets. The Solomon Islands' major exports are timber and fish. Other exports include palm oil, oil seeds, and cocoa.

In 2004, the Solomon Islands' primary export partners were China (27.8%), South Korea (17%), Thailand (15.8%), Japan (9.7%), and the Philippines (4.8%). The primary import partners in 2004 were Australia (24.6%), Singapore (23.1%), New Zealand (7.7%), Fiji (4.8%), and Papua New Guinea (4.7%).

BALANCE OF PAYMENTS

In 1992, export earnings were exceptionally high due to a massive income windfall from the steep rise in the volume of log exports at a time when prices in Asian markets were being driven up by a supply shortage. By the late 1990s, the market for logs had collapsed, causing strain on the Solomon Islands balance of payments. Most manufactured goods and petroleum products must be imported.

In 2004, exports were valued at an estimated $171 million, and imports were valued at an estimated $159 million. In 2002, the Solomon Islands carried an external debt burden of $180.4 million. The country receives approximately $28 million annually in economic aid, primarily from Australia. Other important aid donors include New Zealand, the European Union, Japan, and Taiwan.

BANKING AND SECURITIES

The Solomon Islands Monetary Authority became the Central Bank of the Solomon Islands (CBSI) in January 1983. Three commercial banks also operate on the islands: The Australia and New Zealand Banking Group, Westpac (which took over the Hong Kong and Shanghai Banking Corp.'s local operations in mid-1988), and the National Bank of Solomon Island (NBSI). Only the NBSI has branches outside the capital. Most villages rely on credit

Current Account			21.5
Balance on goods		54.5
Imports	-110.0
Exports	164.6
Balance on services		-31.2
Balance on income		-16.9
Current transfers		15.1
Capital Account			9.2
Financial Account			-33.8
Direct investment abroad		…
Direct investment in Solomon Islands		9.9
Portfolio investment assets		…
Portfolio investment liabilities		…
Financial derivatives		…
Other investment assets		0.0
Other investment liabilities		-43.7
Net Errors and Omissions			-1.6
Reserves and Related Items			4.7
(…) data not available or not significant.

unions. The government's 49% shareholding interest in the NBSI was sold to the National Provident Fund as a part of a privatization program in 1992. The remaining 51% is held by the Commonwealth Banking Corp. of Australia (CBC).

The government participates in private investment projects through a holding company, the Investment Corp. of Solomon Islands (ICSI), the successor to the Government Shareholding Agency. It holds the government's equity in other financial institutions, notably the Development Bank of Solomon Islands (DBSI), as well as in many other companies, some of which are foreign controlled. The government, via the ICSI, uses locally borrowed funds and foreign aid to assist industry. The government also guarantees commercial bank loans to companies in which the ICSI has an equity holding. The International Monetary Fund reports that in 1999, currency and demand deposits—an aggregate commonly known as M1—were equal to $55.1 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $95.2 million.

INSURANCE

Insurance is sold through representatives of foreign firms. In 1997, GRE Insurance, the National Insurance Co. of New Zealand, QBE Insurance, and Zürich Australian Insurance were operating in the Solomon Islands.

PUBLIC FINANCE

The US Central Intelligence Agency (CIA) estimated that in 2003, the Solomon Islands' central government took in revenues of approximately $49.7 million and had expenditures of $75.1 million. Revenues minus expenditures totaled approximately -$25.4 million. Total external debt was $180.4 million.

TAXATION

Individual incomes are taxed on a graduated scale ranging from 14% on the first si$2,100 of taxable income to 42% on taxable income exceeding si$14,700for single taxpayers. Companies incorporated in the Solomon Islands are taxed at a fixed rate of 35%; a rate of 50% applies to those incorporated elsewhere. A value-added tax on telephone services, restaurant food, and overseas travel tickets went into effect in August 1990. Employers contribute 7.5% of employee wages for social security; employees contribute 5% minimum. On 1 July 1990, a resident withholding tax went into effect for royalties, fishing operations, sales of copra and cocoa, and certain other sources of income.

CUSTOMS AND DUTIES

All products imported into the Solomon Islands are subject to customs duties and a 20% surcharge is levied on all ad valorem goods. Specific duties apply to alcoholic beverages, tobacco, rice, and sugar. Concessionary rates have been granted to imports of industrial machinery and equipment, raw materials, chemicals, and building materials. Licenses are required for the importation of firearms, ammunition, animals, seeds, soil, and plant material.

FOREIGN INVESTMENT

The government encourages direct foreign investment through tax concessions, remission of customs duties, and other forms of assistance. Foreigners may repatriate profits (after taxes) and, under most conditions, capital investments. A primary role in the development of resources is reserved for the government. In 1990, Lever Brothers opened a coconut oil plant at Yandina. In 2004, net inflows of foreign direct investment (FDI) amounted to -$5 million.

ECONOMIC DEVELOPMENT

The government has attempted to diversify agricultural production in order to make the economy less vulnerable to world price fluctuations of such key cash crops as copra. Important development projects during the 1980s included new sawmills, a fish cannery, a spice industry, and the Lungga hydroelectric plant. Fisheries receive significant portions of development funds. A rubber industry is being developed, and plans are under way to export the indigenous ngali nut as an upscale confectionery product under the name "Solomons nut."

Foreign assistance plays an essential role in the nation's development strategy; Australia and Japan are the largest donors. In 1996, the Solomon Islands received us$46.4 million in aid. As of the mid-2000s, the country was receiving approximately us$28 million annually in economic aid, primarily from Australia. Other important aid donors include New Zealand, the European Union, Japan, and Taiwan. Aid is also received from the IBRD and ADB. ODA net inflows for 2004 were us$122.2 million.

SOCIAL DEVELOPMENT

A National Provident Fund covering certain categories of wage workers age 14 and older provides old-age, disability, and survivor benefits in lump-sum payments. This program is financed from worker and employer contributions. Employers cover the cost of workers' compensation. The Employment Act mandates that employers pay dismissal indemnity of two weeks' wages for each year of employment. The bulk of organized welfare services are provided by church missions. In small villages and outlying areas, assistance is traditionally provided through the extended family.

Although women are accorded equal rights by law, their role is limited by customary family roles in most Solomon Islands societies. Due to cultural barriers, a majority of women are illiterate, which contributes to a general shortage of employment opportunities for women. Domestic abuse and violence are common.

The government generally respects the human rights of its citizens. However, the armed conflict between rival militias has resulted in the deterioration of human rights.

HEALTH

Poor standards of general hygiene and inadequate sanitation continue to make malaria and tuberculosis endemic. Adequate sanitation is available to 60% of the entire Solomon Islands population.

Infant mortality was estimated at 21.29 deaths per 1,000 live births as of 2005; average life expectancy was an estimated 72.66 years. As of 2002, the crude birth rate and overall mortality rate were estimated at 33.3 and 4.2 per 1,000 people, respectively. As of 2004, there were an estimated 13 physicians and 80 nurses per 100,000 people.

The most prevalent disease reported is malaria. Many of the five island nations in the South Pacific have insufficient vitamin A levels. The incidence of xerophthalmia was present in 1.55% of all children in the Solomon Islands.

In 1999, 15 new cases of leprosy were reported by the World Health Organization, which is advocating multidrug therapy and screening of people in high-risk areas to counter the spread of this disease that was once believed to have been eradicated.

HOUSING

The government has built low-cost housing projects in Honiara to help ease congestion. Outside Honiara, housing is primitive, with overcrowding a problem even in the smaller villages. As of 1996, 80% of the population lived in villages of less than 300 people. According to a 1999 census, there were 65,014 households, 98% of which were single-family households. The average household had 6.3 members. Only 52% of all households had access to piped drinking water, 23% had modern toilet facilities, and 16% had access to electricity.

Since 1998, the government, through the Ministry of Lands and Housing, has been focusing on programs for improved housing and utilities for all.

EDUCATION

Education is not compulsory, and many schools charge fees. In 1976, the government began substantial aid to primary as well as secondary schools. Christian missions (mainly Anglican), supported by government grants, continue to provide some primary schooling. Primary school lasts for six years. This is followed by three years of lower secondary schooling, which is offered through provincial and community schools. An additional two years of upper secondary education is offered through a national secondary school. Students planning to enter university studies take a final year (sixth form). The academic year runs from February to November.

Primary school enrollment in 2003 was estimated at about 72% of age-eligible students. In 2001, secondary school enrollment was at less than 60% of age-eligible students. It is estimated that about 70% of all students complete their primary education.

Higher education is provided by the Solomon Islands Teachers College (Honiara), the Honiara Technical Institute, and the University of the South Pacific Solomon Islands Center, also in Honiara. As of 2003, public expenditures on education were estimated at 3.2% of GDP, or 15.4% of total government expenditures.

LIBRARIES AND MUSEUMS

The National Library (founded in 1974) in Honiara has two branches and a collection of over 100,000 volumes. The library at the Solomon Islands Center of the University of the South Pacific holds 9,000 volumes. The Solomon Islands National Museum and Cultural Center began collecting in the 1950s and opened a permanent site in 1969. The center promotes and provides research into all aspects of Solomon Island culture.

MEDIA

The main post office is at Honiara. In 2002, there were 6,600 mainline phones and 1,000 mobile phones in use nationwide. As of 2004, there were two privately owned radio stations and one public station operated by the Solomon Islands Broadcasting Corporation. Two television channels were sponsored by Australia's Asia-Pacific Service and British Broadcasting Corporation International. There were 80 radios and four televisions per 1,000 population in 1997. In 2003, there were 398 Internet hosts serving about 2,200 Internet users. Periodicals include the Solomon Voice (weekly, 2002 circulation 10,000), Solomon Star (weekly, circulation 4,000), and the Solomon Nius (monthly, 2,000). The government is said to generally respect constitutional provisions for freedom of speech and of the press.

ORGANIZATIONS

Cooperative societies are important in rural areas for the distribution of locally produced goods. Honiara has a chamber of commerce. YMCA and YWCA chapters are active. There are active sports associations in the country, including those representing such pastimes as tae kwon do, tennis, yachting, and weightlifting; most sports groups are affiliated with the national Olympic Committee. The Solomon Island Graduate Women's Association helps support the advancement of women in business and education. There are also chapters of Habitat for Humanity and the Red Cross.

TOURISM, TRAVEL, AND RECREATION

Tourism, although encouraged by the government's Tourist Authority, is not seen as a major growth area due to lack of investment. Visitors are drawn to the ecotourism resorts of the Marovo Lagoon. Fishing and diving are the main attractions. Popular pastimes include rugby, football (soccer), basketball, football, and water sports. All visitors are required to carry a passport and an onward/return ticket.

FAMOUS SOLOMON ISLANDERS

Sir Peter Kenilorea (b.1943), Solomon Mamaloni (1943–2000), Ezekiel Alebua (b.1947), and Sir Allan Kemakeza (b.1951) were among the Solomons' political and government leaders from independence into the mid-2000s.

DEPENDENCIES

The Solomon Islands have no territories or colonies.

BIBLIOGRAPHY

Burt, Ben. Tradition and Christianity: The Colonial Transformation of a Solomon Islands Society. New York: Harwood Academic Publishers, 1994.

House, William J. Population Growth and Sustainable Development: The Case of the Solomon Islands. Suva, Fiji: UNFPA/CST, 1995.

Keesing, Roger M. Custom and Confrontation: The Kwaio Struggle for Cultural Autonomy. Chicago: University of Chicago Press, 1992.

Leibo, Steven A. East and Southeast Asia, 2005. 38th ed. Harpers Ferry, W.Va.: Stryker-Post Publications, 2005.

Lilley, Ian (ed.). Archaeology of Oceania: Australia and the Pacific Islands. Malden, Mass.: Blackwell, 2006.

White, Geoffrey M. Identity through History: Living Stories in a Solomon Islands Society. New York: Cambridge University Press, 1991.